3 Electric SUVs You Should Consider Before They Lose Tax Credit Eligibility
The federal electric vehicle tax incentive isn’t designed to last forever. Automakers like Tesla have already lost eligibility. Toyota EVs are slowly being phased out of the incentive. There are plenty of electric SUVs that are on the verge of losing tax credit eligibility. Buy these electric SUVs before it’s too late.
The Hyundai Ioniq 5 is selling like hotcakes
Hyundai Ioniq 5 sales numbers are great for South Korean automaker Hyundai, but do they benefit potential consumers? Once Hyundai reaches the 200,000 EVs and PHEVs sold threshold its vehicles will no longer be eligible for the full federal electric vehicle tax credit. This means that American consumers will no longer be able to claim a $7,500 inventive towards the purchase of a new Ioniq 5.
The 2022 Hyundai Ioniq 5 is the World Car of the Year. It also got an Editor’s Choice award from Car and Driver. The electric SUV is trampling competitors because it is affordable, practical, and futuristic. Its design and standard driver assistance features and safety tech are very advanced compared to many of its rivals.
The Ioniq 5 currently starts at $39,950. Consumers who claim the full tax incentive will pay closer to $32,450. After the government begins to phase down Hyundai’s incentive eligibility once it meets the threshold, the Ioniq 5 will only be eligible for a $3,750 tax credit until the next phase down. This will make the Ioniq5’s starting price over $36,000. That’s quite the jump from under $33K. The Ioniq 5 is one electric SUV you’ll want to buy before it gets more expensive.
The Ford Mustang Mach-E is about to get much more expensive
Few nameplates had as good of a year as the Ford Mustang Mach-E did back in 2021. The electric SUV won multiple awards and won over thousands of die-hard Blue Oval fans that were initially skeptical about the electric Mustang SUV.
Ford’s experimentation was a success and the Mach-E got a warm reception when it was released. The Mach-E began to compete with segment leaders like the popular Tesla Model Y. The 2022 Ford Mustang Mach-E is having a rough year due to recalls, but the nameplate is still incredibly impactful.
The Mach-E remains one of the most exciting electric SUVs on the market. Ford will soon lose its full tax credit eligibility. The Mach-E Select starts at $43,895. After the full incentive, its price is closer to $36,395. When the incentive is phased down, the Mach-E’s starting price will be much closer to $40K.
Consumers like the Mach-E because it is quick and sporty. The question is, how many Americans will be willing to shell out $40K+ for the electric SUV after the EV tax credit is phased down?
The Hyundai Kona Electric won’t be a sweet deal forever
The Hyundai Kona Electric is one of the few subcompact electric SUVs on the market. The Kona Electric is the electrified version of the popular Hyundai Kona. The Kona is wildly popular because it has engaging driving dynamics and a quirky design. The Kona Electric has a 258-mile driving range.
The Kona Electric SEL starts at just $34,000. After the full incentive, the electric subcompact SUV’s price is closer to $26,500, which is incredibly reasonable. When the tax incentive is phased down the Kona Electric’s price will be closer to $30,000.
The federal electric vehicle tax incentive makes many electric SUVs affordable. Americans will have less affordable options as the incentive is phased out over time.
Read more about the Hyundai Kona Electric in the next article below.